DAMAGES MUST CONTAIN UNCERTAINTY

INSURANCE GREETING,

To be worthy of potential insured losses, there must be an element of uncertainty. Loss must be caused by an unexpected incident or inadvertently committed by the insured. For example, most people do not know whether they will become disabled or unable to work due to accident or illness.

In this case, the insurance company may offer disability insurance to protect it from economic losses caused by the uncertain events. If life insurance is applying the harm principle states that death is a definite event occurred, but the exact date when the person's death, remains unknown.


INSURANCE GREETING


 
NATURE OF INSURANCE

     1. Losses must contain uncertainty.
     2. Losses should be limited.
     3. Loss must be significant (mean).
     4. The ratio of the loss must be predictable.
     5. Loss is not a disaster for the party.